Cash crunch threatens Sudan’s bumper sesame harvest in Gadaref

November 17, 2024 (GADAREF) – Sudan’s sesame harvest is underway in Gadaref state, with a surge in production attracting strong buyer interest, but farmers and traders fear a cash shortage could disrupt sales and jeopardize the success of the season.

Gadaref, a key agricultural hub in eastern Sudan, planted 1.25 million acres of sesame this year, up from 650,000 acres last season. The increased output comes as other regions, including Kordofan, Sennar, and Blue Nile, have seen agricultural activity disrupted by conflict.

“Sesame marketing operations started this morning at the Gadaref exchange with 145,000 sacks arriving,” acting Finance Minister Nagat Ahmed Ibrahim told Sudan Tribune. She said 42 companies are participating in the exchange, up from 25 last year, and banks have provided 45 billion Sudanese pounds ($77 million) in financing.

However, a recent central bank decision to replace the 1,000-pound banknote has raised concerns about cash availability. The move requires citizens to deposit their 500 and 1,000-pound notes into bank accounts, limiting access to physical cash, which is essential for transactions in rural areas.

“This decision is wrong in terms of timing,” said agricultural economist Mamoun Daw Al-Bait. “Farmers, traders, and companies need cash.”

He warned that the shortage could hinder the harvest and sales, impacting both farmers’ incomes and Sudan’s overall economy.

Daw Al-Bait urged the government to ensure sufficient cash flow to support the sector and called for secure storage facilities to protect the harvest.

The FAO estimates Sudan’s grain production in 2023 was 4.1 million tonnes, down 46% from 2022 due to the ongoing conflict.